New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-04-29
THE INSURANCE Association
PROPOSING TO REDUCE RATES TO THOSE WHO

PROPOSING TO REDUCE RATES TO THOSE WHO
PLACE ALL RISKS WITH THE COMBINATION.
The New York Tariff Association the organization
of fire insurance companies revived to succeed the
defunct Metropolitan Association of Fire Und er.
writers yesterday afternoon to discuss PROPOSE
ton to reduce the rate of insurance to insurers who
place all their risks with companies belonging 10 the
association Although no definite action was taken,
the scheme generally received with favor IND
acknO wledged to be the most feasible plan yet pro-
pos ed to make membership in the association an object
The argum eat advanced by those who favor the as
ISOLATION is that the insurance business unlike any
other requires organization. Aside from the ruinous
oom,,etitiOn which necessarily results whom each
compa1y>works Independently, there Is the question
OF rates which cannot be e9uitably arranged except
different ideas about rates and the experience OF one
in q certain class o risks may be altogether different
from that OF another. For instance, some companies
object to issuing policies on dwelling houses because
their experience has been particularly unfortunate
in that class of risks whereas statistics show that the
atvoly small and that therefore it is good risk.
Experience is, of course, the only basis upon which
equitable rates can be made. and sufcieptiy VIDE
aud varied experience can only be supplied ty com
bnation OF the companies. Another advantage gained
by the organization is that large stan OF competent
surveyors be retained by the association aud be con-
stanty at the service owners OF buildings in advising
them to the steps 10 be taken to improve the fac
ties their property tor preventing the spread OF
fire and thus reduce the rate of their Insurance. ans
advice is furnished tree OF charge to insurers and Is OF
great service to the companies in reducing their
connection with this to- there considerable difer-
ence OF opinion among companies, some claiming, Tor
example, that hatch coverings placed in elevator
shafts should operate to reduce the rate cents whe
others think it Is worth reduction OF 20 cents Such
differences can only be adjusted By an even rate made
the basis OF the experiences OF many companies on
When the Tariff Association was reorganized l3o
of the 100 companies transacting business In the
Metropolitan district joined. The other 80 including
two American and two English companies OF the hrst
class refused to connect themselves with the assOc
ton the ground that while they were compelled 10
tla 10th
were no advantages to be gained. These companies,
by working independently. were in position 20 make
matters uncomfortable for the Association companies
by cutting rates In this way they could undoubtedly
get considerable small business, but there are not
enough OF them it is argued to cover large risks and
therefore their business OF this class would have TO be
divided with the association companies. 1t was this
condition of affairs that gave Iisu to the suggestion
that reduction of 10 per cent on the regular tarh
rates be conceded to insurers placing all Their risks
with companies in the association. 1t was denied
that this effort to freeze out or boycott the
non association companies, since they were always at
liberty TO become members OF the association when
they chose. IL is probable that this measure Will be
adopted at the next meeting.